US Stocks Fall on Global Growth Concerns
New York (Dec 30) Stocks pulled back on Wednesday morning as crude oil returned to a level below $37 a barrel.
The S&P 500 (SPY) fell 0.1%, the Dow Jones Industrial Average (DIA) dropped 0.1%, and the Nasdaq (QQQ) slid 0.14%.
Crude oil continued its decline after weekly data from the American Petroleum Institute showed an unexpected increase of 2.9 million barrels in crude stocks in the past week. Analysts had expected a decline in inventories. West Texas Intermediate crude oil prices fell 2.4% to $36.94 a barrel.
Global growth in 2016 will likely be constrained, International Monetary Fund Managing Director Christine Lagarde warned in comments to a German newspaper. Lagarde pointed to higher interest rates in the U.S. and a weaker Chinese economy as likely headwinds to global growth next year. Lagarde also conceded that higher U.S. interest rates were "necessary and healthy."
Must Read: Pep Boys Inks Deal With Icahn After Bridgestone Retreats From Bidding War
After much back and forth, activist investor Carl Icahn appears to have secured a deal with Pep Boys (PBY - Get Report) after Bridgestone declined to raise its bid for the company. Icahn Enterprises (IEP - Get Report) offered $18.50 a share for the auto shop chain, boosting Pep Boys' valuation to $1 billion.
Fairchild Semiconductor International (FCS - Get Report) climbed 3% after acknowledging that it received a revised unsolicited offer worth $21.70 per share. The chipmaker said it would "carefully review and consider" the unidentified bidder's offer. ON Semiconductor (ON - Get Report) had previously offered $20 a share for Fairchild.
DuPont (DD - Get Report) plans to eliminate around 1,700 jobs in Delaware in the first quarter of 2016. The chemicals company, like others in the materials sector, has been squeezed by a slump in commodity prices and reduced industrial demand.
SeaWorld (SEAS) filed a lawsuit on Tuesday challenging the California Coastal Commission's decision to ban the company from breeding killer whales. The theme park operator argues that the commission acted outside its authority in its October ruling.
KaloBios Pharmaceuticals (KBIO) filed for bankruptcy protection just a week after being notified it would be delisted by the Nasdaq. The company has been under pressure since the arrest of Martin Shkreli, its CEO at the time. The biopharma listed its assets and liabilities between $1 million and $10 million.
Source: TheStreet
